Japanese term meaning 'lolita complex,' after the novel (and two movies). The abbreviated 'complex' is generally transliterated with an ending -n rather than -m. Oh those crazy japanese.
The term typically refers to pornographic art, anime or otherwise, of females aged between 12 and 16, and also to those people attracted to such girls. However, real child pornography is sometimes called lolicon.
Art of underaged girls is legal in most countries, which explains the popularity of lolicon. Despite the fact that the age bracket is technically outside the realm of pedophilia, lolicon is frowned apon, especially in the west.

The original meaning for Lolicon, derived from Lolita Complex. The Lolita Complex, is when someone who, over the age of consent, looks like a child. Many meanings for Lolicon have come about over many years.

The newer, more often used meaning for Lolicon, is a form of hentai.

Lolicon, is the sexual depiction of someone under the age of sixteen. You'll find older ages put into original hentai, since the age of consent for Japan, is fourteen.

Note: often the term "lolicon" (like related terms) is misused to refer to pornography of/attraction to infant, adolescent, etc. girls. Strictly speaking, however, the term refers only to prepubescent girls (primarily ages 4-12)

Sense 1:
Person A: I just bought some junior idol dvds, you wanna watch them with me?
Person B: You are such a lolicon!

Lolicon, (or Lolikon/Rorikon), is basically the japanese word for a pedophile who is interested in young girls. It is basically a japanization of "Lolita Complex." It is lolicon instead of lolicom due to the absense of the "m" sound, and the presense of an independant "n" sound.

Overseas, the term can also refer to the type of anime, manga, or doujinshi which involves young girls under the age of consent involved in sexual activities, though usually 12 and under. Such pornography is normally refered to as loli in Japan.

Lolicon involves a young girl and an older guy, or older girl, or same age girl. It is a Japanese term for that type of anime/manga. Lolicon content is usually under the catagory of Hentai because most of the content includes mature situations. Lolicon is legal in Japan because the legal age is 13. Although strict laws are in place for distrubution.

I am a girl, a bisexual girl, and I download Lolicon, it is not dangerous nor has it made me a freak, or a rapist.

Contrary to popular belief, "loli' is NOT the abbreviation for "lolicon".
In Japan, a "Lolicon" refers to a person, usually a man, who enjoys looking at young girls(loli), be it sexually or not.
These lolicons are usually depicted as perverted people.